BYD's Global Dominance Eludes India as Regulatory Uncertainty and High Import Duties Hinder Growth

China’s BYD has overtaken Tesla to emerge as the world’s largest battery electric vehicle (BEV) maker, selling around 2.25 million units globally in 2025. Yet in India , the world’s third-largest automobile market, the company’s performance remains modest and increasingly under pressure. BYD sold 5,431 units in India in 2025 — roughly 0.2% of its global BEV sales — underscoring the gap between its international scale and domestic footprint. Although volumes nearly doubled from 2,870 units in 2024, its competitive position weakened. Industry data show BYD ranked fourth among electric passenger vehicle makers in 2024 but slipped to fifth in 2025. In the first six weeks of 2026, up to February 15, it fell further to ninth place, selling just 361 units. New entrant VinFast and German luxury carmaker BMW have outsold BYD so far this year, reflecting intensifying competition across both mid-premium and luxury segments. Sector experts attribute BYD’s limited traction to regulatory uncertainty, high import duties and its premium-heavy product portfolio. “BYD India is rapidly expanding its global footprint and cementing its position as a dominant force in the international automotive arena. However, strained India–China diplomatic relations have compelled the company to adopt a guarded stance on investments in India,” said Puneet Gupta, Director at S&P Global Mobility. “Despite offering products in the upper side of the segment, steep import duties inflate pricing, severely cap its volume ambitions in the market.” BYD entered India’s passenger vehicle segment in November 2021 and currently offers four models. Its entry-level Atto 3 and eMax 7 are priced around ₹30 lakh, while the Seal and Sealion 7 are priced at approximately ₹45 lakh and ₹53 lakh. Two of these models are imported under the GSR 870(E) rule, which allows up to 2,500 imported CBU or CKD units annually without full local homologation. However, analysts point out that pricing alone does not explain the gap. There remains a degree of hesitation among premium buyers toward Chinese brands, especially in a segment where brand legacy and perceived reliability weigh heavily in purchase decisions. BMW, whose electric models are priced above ₹53 lakh, has recorded stronger early-2026 sales momentum than BYD, suggesting that brand trust continues to play a decisive role. “Among premium EV buyers, brand perception and long-term confidence are critical,” said Som Kapoor, future of mobility leader- consulting, partner at EY India Automotive. “BYD’s products in India appear premium in terms of features, but when compared with the company’s global flagship offerings, they are positioned more as upper mid-segment vehicles. Indian buyers in this price band expect clear value for money and strong brand assurance, which BYD is still in the process of establishing,” Kapoor added. In contrast, domestic leaders Tata Motors and MG Motor have built scale with electric vehicles priced below ₹10 lakh, while Mahindra’s EV portfolio begins at around ₹15 lakh. VinFast, with models priced between ₹20 lakh and ₹25 lakh and local manufacturing plans, has also managed to outpace BYD’s recent volumes. Localisation remains a key constraint. A source aware of BYD’s plans said the company has been exploring higher local content for over two years, but regulatory approvals and geopolitical sensitivities have slowed progress. A $1 billion manufacturing proposal submitted after the Covid-19 pandemic remains pending with the government. Without local production, BYD relies significantly on imports, exposing it to steep customs duties and limiting pricing flexibility. Import caps under the GSR route could further restrict expansion if volumes rise, while supply constraints have reportedly extended delivery timelines. The broader policy environment has added complexity. Since 2020, India has tightened scrutiny of investments from neighbouring countries, including China. Even as New Delhi signs or negotiates free trade agreements with Western economies, provisions related to ownership structures may continue to affect Chinese automakers’ expansion plans. A query sent to BYD India regarding its strategy and expansion roadmap remained unanswered till press time. For now, BYD’s global leadership has yet to translate into dominance in India. With Maruti Suzuki preparing its electric vehicle entry and domestic manufacturers expanding capacity, the competitive landscape is set to intensify further.